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Clover lowers earnings outlook, on effects of drought and rand.
Clover lowers earnings outlook, on effects of drought and rand.

Clover lowers earnings outlook, on effects of drought and rand

RETAILER NEWS - Sep 7th 2017, 13:23

Food, beverage and dairy group Clover has warned that earnings will be worse than previous guidance, as it reels from the after-effects of the 2015-16 drought and volatility in the rand, which inflated input costs. 

Clover expects headline earnings per share (HEPS) in the year to June to drop by 65%-67% from the 188.9c reported a year ago. In May it had warned that HEPS would fall 50%-65%.

It said selling price increases to counter cost pressures, and a cooler summer had also affected sales volumes, except for the new yoghurt and custard categories.

The share was priced marginally lower at R15.39 in mid-morning trade on the JSE, suggesting that the bad news could already have been priced in.

"While the after-effects of the prolonged drought will be felt for some time, a gradual recovery in milk and fruit production volumes is expected," the company said in the statement.
© BusinessLIVE MMXVII 

Read more about: sales | jse | clover

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